The Japanese government bond (JGB) market is undergoing a sharp and rapid sell-off, with yields surging to multi-decade or record highs. This trend is largely fueled by growing concerns over Japan's fiscal policy, mounting public debt, and sustained domestic inflation.
The benchmark 10-year JGB yield surged to approximately 2.34% on January 21, 2026, marking a 27-year high, while the 40-year JGB yield exceeded 4% for the first time in history. Japan is currently facing sustained inflation, with the rate reaching 2.9% in November of the previous year.
The benchmark 10-year JGB yield surged to approximately 2.34% on January 21, 2026, marking a 27-year high, while the 40-year JGB yield exceeded 4% for the first time in history. Japan is currently facing sustained inflation, with the rate reaching 2.9% in November of the previous year.
